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CEPA (Certified Exit Planning Advisor) Exam Prep Questions With 100% CORRECT ANSWER s!!!
Question 1: What is the calculation for Recasted EBITDA?
CORRECT ANSWER : Addbacks + EBITDA = Recasted
EBITDA
Question 2: What does EBITDA stand for?
CORRECT ANSWER : Earnings Before Interest, Taxes,
Depreciation, & Amortization
Question 3: What are the three gaps within the Value
Acceleration Methodology?
CORRECT ANSWER : Wealth Gap, Value Gap, & Profit Gap
Question 4: What are the Five Stages of Value Maturity in
order?
CORRECT ANSWER : Identify, Protect, Build, Harvest,
Manage
Question 5: In the Five Stages of Value Maturity, what occurs in
the "Identify" stage?
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CORRECT ANSWER : Identify and asses the business value.
Understand how ready and attractive the business is. What is the current value? What is it's potential value? What are the gaps?
Question 6: What are considered the "Value Creation" stages
within the Five Stages of Value Maturity?
CORRECT ANSWER : Protect Value and Build Value
Question 7: In the Five Stages of Value Maturity, what occurs in
the "Protect" stage?
CORRECT ANSWER : Protect what you have because "build"
means more risk. Make sure the right systems are in place: the
right financial advisor, right financial plan, documented standard operating procedures within the business, insurance, etc. Protect always comes before Build. Non-strategic actions are ALWAYS before strategic actions.
Question 8: In the Five Stages of Value Maturity, what occurs in
the "Build" stage?
CORRECT ANSWER : This is made up of strategic actions
including culture building, communication building, personnel changes, new products/improvements, etc.
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Question 9: In the Five Stages of Value Maturity, what occurs in
the "Harvest" stage?
CORRECT ANSWER : This is when the owner exits the
company and harvests its value
Question 10: Simply put, what is exit planning?
CORRECT ANSWER : Good Business strategy
Question 11: What are the Four intangible Capitals or "Four
C's"?
CORRECT ANSWER : Human Capital, Structural Capital,
Customer Capital, & Social Capital
Question 12: How much of a business' value (in percentage) is
trapped inside the four intangible capitals or "Four C's"?
CORRECT ANSWER : 80%
Question 13: What is Human Capital?
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CORRECT ANSWER : It's the people in the business. Employee
tenure, experience / talent level, management team succession plan, management team strength, etc.
Question 14: What is Structural Capital?
CORRECT ANSWER : The most robust of the "Four C's", this
includes everything from the real estate, intellectual property, equipment, process & documentation, IT, systems (including financial & accounting systems), etc.
Question 15: What is Customer Captial?
CORRECT ANSWER : Depth of customer relationships,
customer entanglement, customer concentration / diversification, contracts, etc.
Question 16: What is Social Capital?
CORRECT ANSWER : Culture within & outside the company.
How people relate outside of the company. This is developed over time after all other intangible capitals are established/improved.